STAA Should I Buy
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$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
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Not a good buy right now. Despite deeply oversold readings that can spark a short-term bounce, STAA is still in a clear bearish trend (SMA200>SMA20>SMA5) and options positioning is overwhelmingly defensive (very high put/call ratios), suggesting traders are still leaning bearish. With no Intellectia buy signals and no near-term news catalysts, an impatient buyer is more likely to get a weak/failed bounce than a clean upside move. I would avoid buying here.
Trend remains bearish: moving averages are stacked negatively (SMA_200 > SMA_20 > SMA_5), signaling sustained downside structure. Momentum is still negative but selling pressure may be tiring: MACD histogram is below zero (-0.114) yet negatively contracting (bearish momentum weakening). RSI_6 at 15.5 is extremely oversold, which often leads to reflex bounces, but oversold alone is not a reliable trend reversal signal. Key levels: immediate support is S1 ~18.90 (price ~18.95 is sitting right on it); below that S2 ~18.29. Overhead, pivot resistance is ~19.88, then R1 ~20.86. For the trend to improve quickly, it would need to reclaim ~19.88 and hold; otherwise bounces are likely to be sold into.
Trading flows: hedge funds and insiders show neutral activity (no notable selling pressure from these groups in the provided window).
Primary issue is trend: bearish moving-average stack indicates rallies may be sold. Options market is heavily bearish (extreme put/call ratios), reflecting pessimism or strong hedging demand. No supportive news catalysts in the last week. Analyst action recently trended negative via a meaningful price target cut, and the strategic optionality tied to the Alcon deal has been removed (shareholders rejected the deal), shifting focus back to standalone fundamentals.
Latest reported quarter: 2025/Q3. Revenue grew to $94.732M (+6.93% YoY), showing continued top-line growth. However, profitability weakened: net income fell to $8.884M (-10.98% YoY) and EPS declined to $0.18 (-10.00% YoY). A notable positive is gross margin expanding to 82.21% (+6.34% YoY), suggesting product-level profitability improved even as bottom-line results softened (likely driven by opex, mix, or other below-gross-margin items). Overall: mixed—growth is positive, but earnings trend is negative.
Recent change: On 2026-01-16, Canaccord lowered the price target to $22 from $30.75 and maintained a Hold rating after STAA entered a cooperation agreement with its largest shareholder Broadwood Partners and shareholders rejected the Alcon deal. Wall Street pro view: margin strength and revenue growth support the business quality. Con view: diminished M&A upside (deal rejected) and weakening earnings/EPS trajectory justify a more cautious stance and a reduced valuation framework, aligning with the Hold rating and lowered target. Politician/congress activity: no recent congress trading data available.
